National Homeownership Month
June is National Homeownership Month, celebrating the incredible accomplishment of so many Americans in the last hundred years. At Usaj Realty, we know just how hard you work to make this dream a reality, and are ready to support you in buying or selling your home. It truly is a feat to be a homeowner, and wasn’t always such a straightforward process. This month, we’re celebrating by diving into the history and benefits of homeownership.
The History of Homeownership
100 years ago owning a home was not feasible. Banks did not have enough capital to lend to borrowers, and many people didn’t have enough money to make regular payments. It all changed in 1933, when the U.S. government created the Home Owners’ Loan Corporation. A year later they created the Federal Housing Administration and the Federal National Mortgage Association (now referred to as Fannie Mae) which allowed for reliable lending and financial support when buying a home. Next came the G.I. Bill of 1944, which provided subsidized mortgages for World War II veterans. These institutions and bills helped stabilize the housing market, stimulated the economy, and allowed for people everywhere to fulfill their dream of homeownership.
National Homeownership Week began as a strategy under President Bill Clinton in 1995 to increase homeownership and the awareness of the support offered by the federal government. President George W. Bush later expanded the week to the month of June to reinforce the belief that owning a home is an achievable step in the American dream.
The Benefits of Homeownership
At Usaj Realty, we know that purchasing and owning a home is one of the greatest investments in your future that you can make. There are so many reasons to own a home rather than rent, and here are just a few:
- Appreciation — “Appreciation” refers to the increase in the value of a property over time. Census data shows the median price of a home jumped from $172,900 in 2000 to $417,700 in 2023. That’s greater than 6% appreciation per year on average!
- Equity — As your home appreciates in value, so does your equity. Equity is the difference between what you owe on your home (mortgage) and the home value. Historically, the longer you own your home, the more equity you are able to build. This money doesn’t just exist on paper— when you sell your home, the difference is yours!
- Savings — When you’re renting, that money funds your landlord and possibly their mortgage. When you own your home, that money pays down your mortgage and builds equity. When you sell, you can generally exclude up to $250,000 of gain without owing any federal income tax.
- Freedom — Owning a home is truly freedom; you don’t have to ask anyone to paint your walls, update anything, or make it your own. The home is yours to decorate how you wish!
- Community — Renters statistically move more often than homeowners, meaning it can become difficult to build lasting relationships with your surrounding community. As a homeowner, you’re more established and so are your neighbors. This can mean benefits to your mental health, as well as better education and social continuity for children.
Thoughts on Homeownership:
Owning a home is an exciting step in the journey to achieving your dreams. With the support of a qualified team, anything is possible. Whether you currently own a home or are dreaming of it, Usaj Realty is here to support your needs. Contact us today to begin your journey to homeownership!
